B. Summary of Rule Changes

As a result of public comments received in response to the interim rule, the following changes have been made:

1. DFARS 215.407-5-70(d) is removed. The criteria for maintaining an acceptable estimating system have been relocated to the clause at 252.215-7002, Cost Estimating System Requirements.

2. DFARS 232.503-15 has been revised to correct the reference to the system criteria at DFARS 252.242-7004(d)(7).

3. DFARS 242.302(a)(4) has been deleted and an additional contract administration function to approve or disapprove contractor business systems has been added at DFARS 242.302(a)(S-74).

4. The term "cost" has been replaced by "cost-reimbursement," as appropriate, in DFARS 242.7000(b)(1) and DFARS 252.242-7005(e).

5. The phrase "and are expected to correct the significant deficiencies" has been added to the end of DFARS 242.7000(d)(2) for clarity.

6. Under DFARS 242.7001, Contract clause, University Associated Research Centers (UARCs) has been added to the list of entities to which the clause at DFARS 252.242-7005 does not apply.

7. DFARS 242.7502(g)(2)(ii) and (iv) are revised to remove specific examples of alternatives that contracting officers should consider to mitigate the risk of accounting system deficiencies on proposals where the deficiency impacts negotiations. These examples are removed so that contracting officers do not misinterpret these as being appropriate for mitigating all accounting system deficiencies.

8. The term "cost or pricing data" has been replaced by "certified cost or pricing data," as appropriate, in DFARS 242.7502(g)(3)(ii), DFARS 244.305-70(f)(3)(ii), and DFARS 252.215-7002(c)(1) and (2).

9. The words "fixed-price" have been deleted from 242.7503(b) for clarity.

10. The words "compliance with" have been added at DFARS 252.215-7002(d)(4)(xii) for clarity, as well as numerous changes in punctuation have been made throughout 252.215-7002(d)(4).

11. The clause at 252.242-7005, Contractor Business Systems, has been amended to clarify that the clause is applicable only to contracts awarded that are subject to Cost Accounting Standards (CAS), since a contracting officer is not likely to know if the resulting contract will be subject to CAS when drafting the solicitation. As a result, paragraphs (a) through (e) have been redesignated as (b) through (f).

12. The clause at DFARS 252.242-7005, Contractor Business Systems, has been amended to clarify the language regarding Contracting Officer determinations made based on the evidence submitted by the Contractor, that there is a reasonable expectation that the Contractor's corrective actions have been implemented and are expected to correct the significant deficiencies. Additionally, the clause language has been amended to require that Contracting Officers reduce withholding directly related to the significant deficiencies by at least 50 percent if, within 90 days of receipt of the Contractor notification that the Contractor has corrected the significant deficiencies, the Contracting Officer has not made a determination. In amending this clause, paragraph (f)(iii) has been added and former paragraphs (f)(iii) and (iv) have been redesignated as (f)(iv) and (v).

13. The clause at DFARS 252.242-7006, Accounting System Administration, has been amended to delete the term "periodic monitoring"under paragraph (c)(8), and add additional language to clarify the intent of the system criterion.

14. The clause at DFARS 252.245-7003, Contractor Property Management System Administration, has been amended to delete from paragraph (f) the phrase "leading to a potential risk of harm to the Government."